Salient to Investors: Jeffrey Lacker at FRB of Richmond said Financial markets will remain volatile as policy makers debate tapering, part of the process of incorporating new information into financial asset prices. Reaction to Bernanke’s comments is evidence that they had built-in expectations of more asset purchases than I think the
READ MORE... →Salient to Investors: Alexander Friedman at UBS says: What Fed has done is not unexpected and the market reacted because it was ahead of itself. All the Fed was saying was that the US is doing OK, that the data is trending as it should, and that it has confidence
READ MORE... →Salient to Investors: Robert Pavlik at Banyan Partners said the message various Fed governors are trying to send is no clearer than what was talked about by Bernanke last week, and sees no reason to buy on the pullback, and since there was not much follow through at least on the
READ MORE... →Salient to Investors: Jason Zweig writes: Good advice rarely changes, while markets change constantly. People need good advice, but want advice that sounds good. The advice that sounds the best in the short run is always the most dangerous in the long run. Everyone wants the magical low-risk, high-return investment
READ MORE... →Salient to Investors: Kit Juckes at Societe Generale says each of the last three significant financial bubbles in the past 30 years have been fueled by the Fed keeping interest rates below the economy nominal GDP growth the fed funds rate. Juckes says in the past when year-over-year Nominal GDP
READ MORE... →Salient to Investors: Makoto Suzuki at Okasan Securities said Treasury yields have risen too much, and the stock market appears to be too optimistic about the US economic outlook. The median estimate of the Thomson Reuters/University of Michigan index of consumer sentiment is 83 for June versus the 6-year high of 84.5
READ MORE... →Salient to Investors: Property purchases by U.S. REITs are likely to be curtailed as a tumble in share prices makes a key source of capital costlier. Jim Sullivan at Green Street Advisors said for most property types, we have hit the pause button and expect REIT executives to be very careful with respect
READ MORE... →Salient to Investors: A. Gary Shilling at A. Gary Shilling & Co. writes: Short stocks and commodities, go long the dollar and Treasuries – if stocks continue to decline, the safety of Treasuries and investment-grade bonds will outweigh concerns about the end of QE. World economies are growing slowly at
READ MORE... →Salient to Investors: Henry Paulson at the Paulson Institute said: Phasing out QE will cause market volatility and pain because there is never a neat, elegant solution that is totally painless or without a cost to a big, ugly problem – some market participants are addicted to these abnormally low interest rates. The US
READ MORE... →Salient to Investors: Social-investment networks, which started appearing in the middle of the last decade, are attracting record interest, turning top performers into market stars for individual investors. The top traders – gurus – may have as many as 100,000 followers and 10,000 copiers, raising concerns among professional investors. Justin
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